PIACL privatization hits final stretch

May 01, 2026 (MLN): Pakistan’s national carrier is moving closer to full privatization as a consortium spearheaded by Arif Habib Corporation Limited has formally expressed its intention to acquire the remaining 25% stake in Pakistan International Airlines Corporation Limited (PIACL).

The development follows a notice submitted to the Privatization Commission, signaling the group’s plan to exercise its call option under the Share Purchase and Subscription Agreement (SPSA) signed earlier this year on January 29, 2026.

The move is backed by a standby letter of credit, indicating the consortium’s readiness to proceed in line with agreed terms, according to a press release issued.

The transfer of management control is targeted for completion by May 25, 2026, the designated First Closing Date contingent upon the fulfilment of pre-agreed conditions outlined in the SPSA.

The overall transaction is expected to bring in around Rs180 billion in private investment.

This includes at least Rs55 billion to be paid to the government as proceeds from the divestment, while a substantial Rs125 billion will be injected into PIACL as fresh capital to support its financial restructuring.

The incoming investment is aimed at revitalizing the airline’s operations, including upgrading and expanding its fleet, enhancing route networks, and improving customer service and operational efficiency.

The investor consortium comprises several major business groups, including Fatima Fertilizer Company Limited, Lake City Holdings (Pvt) Limited, The City School (Pvt) Limited, AKD Group Holdings (Pvt) Limited, and Fauji Fertilizer Company Limited, alongside Arif Habib Corporation Limited.

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